South Korea's Ministry of Economy and Finance announced that an expanded macro fiscal financial meeting has been convened to strengthen coordination on macro policy and risk management, with the Bank of Korea joining the existing three-agency format. The meeting reviewed major issues across the macroeconomic, fiscal and financial areas and agreed that, as economic and market conditions shift, policy authorities need to operate macro policies in a more closely coordinated way. Participants assessed the economy as broadly maintaining a solid trend, citing first quarter nominal GDP growth of 17.1 percent year on year, the fastest since the third quarter of 1995, alongside a 53.2 percent year on year rise in May exports and a widening current account surplus. They agreed that stronger revenue prospects should be used for future-oriented investment to raise potential growth, while fiscal policy should also help address inequality and ease cost of living pressures, supported by fiscal restructuring and spending realignment. At the same time, they warned that more volatile financial conditions could raise pressure on vulnerable groups, including low-income and low-credit borrowers, small business owners, small importers exposed to exchange rate moves, and leveraged investors facing equity market volatility, and agreed to monitor these risks closely. The ministry said the expanded meeting format will be used flexibly in future depending on the agenda and policy issues involved. Authorities also agreed to deepen coordination in preparing the second-half economic growth strategy and in subsequent policy management.

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